SAI.TECH Consolidates Mining Product Offering

OKX Entering Indian Market With a Focus on Web3Cryptocurrency exchange OKX is gearing up to make its presence felt in the Indian market.Local recruitmentThat’s according to a discussion between a company executive and CoinDesk, as explained by the publication in a report published on Friday. The firm plans on recruiting local employees in its endeavor to conquer the market within the world’s most populous nation.OKX intends to rely on local employees who will spearhead its initiatives in the country. Haider Rafique, Chief Marketing Officer at OKX explained:“We’re trying to identify who’s who in the zoo and what is their contribution. There’s a large developer community. How do we help them? Build a relationship with them.”He believes that adopting a community-centric approach will pave the way for a successful entry into the local market. Rafique emphasized:“We’re going to learn about the community. We’re going to work with local folks — figure out where we can add value.”Photo by Naveed Ahmed on UnsplashFocusing on Web3 applicationsThe company also intends to take on the challenge by placing emphasis on the use of Web3 applications. Rafique revealed the company’s ambitious plans to scale up its wallet services “exponentially” by engaging with India’s developer community. Currently, there are approximately 200,000 OKX Wallet users in India, accounting for just 5% of the country’s Web3 user base.In a recent collaboration, OKX partnered with the blockchain platform Neo for an APAC Hackathon held in Bengaluru, a city in southern India. Rafique described this move as a strategic test to validate assumptions, understand the local culture, and support the burgeoning Web3 ecosystem.The global exchange already has a physical presence in world centers such as Hong Kong, Singapore, Dubai, and the Bahamas.Indian crypto environmentTrading cryptocurrencies is currently legal in India, albeit with no established regulatory framework by a central authority. Ironically India has been very active in working towards the establishment of global regulatory standards relative to crypto while coming in for criticism from its Supreme Court recently for the government’s failure to provide regulatory clarity at home.Cryptocurrencies are used and traded at the investor’s risk in India and do not hold legal tender status for banking purposes. Additionally, a 30% tax is imposed on cryptocurrency transactions in the country.Rafique believes that Indian regulators are gradually distinguishing Web3 from centralized finance (CeFi). He remarked: “They’re more concerned about venues that have fiat on-ramps, which we do but don’t offer it in India.” He expressed a readiness for the company to become a front-runner once India establishes a regulatory framework for cryptocurrencies.It’s interesting to note that while OKX embarks on expanding its footprint within the Indian market, Indian crypto market incumbents have been looking to downsize. Indian cryptocurrency exchanges like CoinSwitch and CoinDCX have faced layoffs amid the current market downturn.Notwithstanding current market conditions, it’s likely that OKX is taking a long-term view and positioning itself for future success in what should be a very important crypto asset marketplace in the future.Ryan Selkis, CEO and Founder of crypto market intelligence firm Messari expressed this view, stating: “I love to see companies like OKX expanding in India. The largest democracy in the world should be a haven for crypto innovation in the years to come.”

Sygnum Bank, a digital asset bank based in Switzerland and Singapore, has conducted a survey which has identified that investors in Singapore are more interested in increasing their allocation to crypto than their international peers. The bank’s 2024 Future Finance survey states that while a global average of institutional investors of 47% plan to increase their exposure to crypto next year, in the case of Singapore-based institutional investors, 57% of them expressed the view that they would increase their crypto holdings in 2025.Photo by Precondo CA on UnsplashThe report states:  "Singapore investors exhibit a higher risk appetite and motivation to invest on average than respondents from other countries.” The annual survey, which was published on Nov. 14, collated insights garnered from more than 400 institutional and professional investors, distributed across 27 countries, with average investor experience of in excess of 10 years. 121 of the survey’s participants were based in Singapore, with the survey having been conducted during Q3 2024. Long-term confidenceSingaporean respondents suggested that they were confident in the long-term potential and outlook where cryptocurrencies are concerned. While the main reason for investing in crypto was to gain exposure to digital assets in line with a global trend (56%), 41% of respondents from the city-state cited portfolio diversification as their reason for investing in the emerging asset class.  75% of investors expressed the belief that regulatory clarity has improved recently. Growing confidence among institutional investors generally is likely to be developing due to increasing certainty relative to digital asset regulation. While Donald Trump had not been elected in the United States at the time that survey participants responded, it was looking increasingly likely that he would win the election.  That’s likely to have had a bearing on investor outlook, not just within the United States but internationally, given the implications in terms of positive regulation and an overall positive approach to crypto. 39% of Singaporean respondents cited yield-generation opportunities as their motivation in investing in digital assets. The recent advent of spot crypto exchange-traded funds (ETFs) stood out as another motivation for investors.  Breaking down specific areas of interest within the crypto sector, 71% of Singaporean respondents were interested in investment in layer-1 blockchain networks. Meanwhile, 56% expressed an interest in Web3 infrastructure investment options, with 41% showing an interest in layer-2 blockchain networks. Interest in asset tokenizationIn relation to tokenization, 47% of those surveyed in Singapore indicated an interest in tokenizing mutual funds and corporate bonds over and above other financial assets and products. When first proposed, real estate was considered the most obvious asset primed for tokenization but mutual funds and corporate bonds now appear to be gaining more traction. Asset tokenization has been garnering considerable attention in mainstream finance but especially so in Singapore. Local regulator, the Monetary Authority of Singapore, (MAS) has been running Project Guardian, a collaboration between MAS and the financial services industry with an emphasis on asset tokenization. The project recently brought in the German central bank, the World Bank, HSBC and markets infrastructure firm Euroclear as participants. 

Korean Crypto Exchange Presents Bitcoin Forecasts for Three ScenariosRecently, concerns over a potential US default have heightened due to the ongoing disagreement between Republicans and Democrats in the US Congress regarding the necessity of increasing the debt ceiling. Democrats, along with the Biden administration, advocate for authorizing additional debt, while Republicans propose spending cuts.Considering the historical patterns observed in the US and the inherently political nature of this matter, it is improbable that the uncertainty surrounding the debt ceiling raise will endure for an extended period. In the past, when faced with a similar situation in 2011, the debt ceiling was ultimately approved despite significant political divisions. Particularly with upcoming elections next year and escalating concerns of an economic downturn, it is likely that a resolution to the debt ceiling issue will be reached soon.In light of these circumstances, the economic research institute at one of South Korea’s major crypto exchanges Bithumb released a report that outlines three distinct scenarios depicting the potential unfolding of the debt ceiling issue in the US. Additionally, it has offered insights into the potential implications for Bitcoin under each scenario.Photo by Shubham’s Web3 on UnsplashBipartisan agreement to increase the debt ceilingIn the scenario where the debt ceiling is promptly raised as a result of a significant bipartisan agreement, the US is anticipated to adopt an expansionary fiscal policy by issuing government bonds to prevent a default. If a debt ceiling deal is reached, it is projected that short-term bond issuance will reach a net amount of $1.4 trillion by the end of the year. There is also a growing consensus that medium- and long-term bond issuance may commence in the third quarter. Additionally, the possibility of interest rate cuts as early as the second half of this year entered the equation. In the long term, this could potentially lead to a depreciation of the dollar as market liquidity increases, thereby weakening the currency. It is worth noting that historically, the value of Bitcoin tended to go up when market liquidity rises.Debt ceiling disagreement and delayed negotiationsAnother scenario entails the failure of the two parties to reach an agreement and a subsequent delay in approving a raise to the debt ceiling. Should the debt ceiling not be raised in a timely manner, the US would potentially encounter an unparalleled default on its debt obligations. This default could trigger a severe credit crunch, resulting from international credit downgrades and a weakened global standing for the US. Such circumstances would further escalate the risk of an economic crisis.As the negotiations on the debt limit continue to be delayed, there will be a prolonged period of uncertainty in both Treasury issuance and secondary markets. This uncertainty poses risks to money market funds (MMFs) that hold a significant portion of short-term Treasuries, potentially resulting in losses. Consequently, there could be a shift towards reverse repo (RRP) transactions as investors seek alternative avenues. In fact, Treasury liquidity has recently exhibited signs of deterioration, with MMFs and RRPs garnering considerable attention in the market.Heightened concerns regarding short-term Treasuries could lead to a higher volume of reverse repo trades compared to repo trades. Repo transactions use Treasuries as collateral, whereas reverse repo transactions involve depositing funds with the Fed or lending money to the Fed in exchange for collateral, which often includes Treasuries, thereby earning interest. In such a scenario, market liquidity could become trapped in the Fed, potentially rekindling risks within the banking system.Given their sensitivity to liquidity conditions, crypto markets are anticipated to experience a temporary decline. However, Bitcoin has exhibited a historical pattern of appreciating in value as an alternative to the US banking system, especially during instances of small and medium-sized bank failures. In the event of prolonged negotiations and an escalating risk of a US default, the demand for safe-haven assets like Bitcoin might surge. As a result, Bitcoin could gain favorability as investors seek refuge in alternative assets amidst uncertain market conditions.Linking debt ceiling increase to spending reductionThe last scenario involves a conditional agreement accompanied by measures aimed at reducing the deficit, as proposed by Republicans. Given the longstanding concerns surrounding excessive US deficits, any agreement to raise the debt ceiling would likely be contingent upon fiscal consolidation and spending cuts. Notably, as of March 31, 2023, the US federal deficit is approximately 8% of GDP, a figure comparable to the 8.3% average observed in 2011 when the possibility of a US default reached its peak.While fiscal consolidation is necessary to ensure fiscal sustainability, unless the US significantly increases tax revenues, an increase in the debt ceiling may be negotiated at the expense of significant cuts to the national budget. In such a case, the US economy would inevitably experience the adverse effects of reduced government spending.The Republican party has put forth a demand of $4.8 trillion in deficit reduction over the next ten years as a condition for raising the debt ceiling. This figure translates to an average of $480 billion per year or approximately 1.8% of the current year’s GDP (as of May). However, it is important to note that in the medium to long term, reductions in government spending without complementary expansionary monetary policies have the potential to accelerate GDP decline. If Congress agrees to cuts in government spending, it could increase the probability of the Fed swiftly reversing its tightening policy. Unless the Fed halts its tightening measures, the likelihood of a US recession may become more pronounced.If the Fed decides to cut interest rates earlier than anticipated in response to the Treasury’s fiscal consolidation efforts, Bitcoin, which is known to be more responsive to long-term monetary policy, might be able to overcome the short-term downturn and experience an upward trend.The authors contend that at present, market attention is primarily directed towards the matter of raising the debt ceiling, taking into account the potential risks of a US default and the possibility of a bond rating downgrade. However, they believe it is unlikely that US politicians will make radical decisions in the run-up to next year’s presidential election.While the issue of raising the debt ceiling will have a short-term impact, the report argues that the main drivers of Bitcoin’s price in the medium to long term will be the Fed’s monetary policy and the occurrence of Bitcoin’s halving event.It is important to note that there is a time lag between the end of the Fed’s tightening measures and the halving of Bitcoin. In the short term, the price trajectory of Bitcoin will likely be influenced by factors such as the potential failure of additional small and medium-sized US banks (which is concerning given recent outflows of US bank deposits) and increased demand for safe-haven assets due to the delay in raising the debt ceiling. These factors will play a greater role in shaping Bitcoin’s short-term performance.